‘2nd YEAR OF 2012-2014 ENGINEERING SURVEY PROGRAM OF SKK MIGAS-KKKS’ Risk Assessment and the API. Exploration and Production. (Drilling Risk and Operational Risk.) By Randy A. Garrad Bandung 2013. Bandung 2013.

Risk Assessment and the API. ‘2nd YEAR OF 2012-2014 ENGINEERING SURVEY PROGRAM OF SKK MIGAS-KKKS’ Risk Assessment and the API. CV: Mr. Randy A. Garrad is an American Engineer from the Great Lakes region of the USA. Mr. Garrad started in the oil sector in 1977 – specifically oil shale in the Western USA. From there to the Gulf of Mexico where offshore platforms and jackup rigs were becoming much more complex and powerful. From that experience, application of the API Standards seemed to be a priority specification with customers, EPC firms, and government regulators. Being expert with API-610 pumps, API -617, 618, 619 compressors, and API -620 gas turbines, led to a career with GE as Project Manager on Petrobras P-36 deepwater semi-submersible conversion from drilling rig to production platform. (In 1997 – the world’s largest semi-sub.) He started his own business 2004 as a Consulting Engineer. Education has been Cornell University BS Agricultural Engineering, Colorado School of Mines, and recently at Columbia University’s Water Center at the Earth Institute, where he serves as a Consultant on Africa River issues for the UNDP. By Randy A. Garrad Bandung 2013. Bandung 2013.

What is the API? The American Petroleum Institute (API) is the only national trade association that represents all aspects of America’s oil & natural gas industry. Bandung 2013. Bandung 2013.

We generally refer to these as the API Standards. Where do we interact? The American Petroleum Institute (API) takes responsibility for industry Publications, Standards, & Statistics. We generally refer to these as the API Standards.

Why do we interact? API Standards are ‘Global’ Industry Standards. different from: ISO Standards are ‘International’ Standards.

Will we interact? API Standards are ‘Global’ Industry Standards. but are incorporated in: Government Regulations. (Over 100 different API Standards by the US Government.)

Exploration & Production. (Upstream.) Overview of all API Standards. Category specific: Exploration & Production. (Upstream.) Petroleum Measurement. Marketing. (Downstream.) Pipeline Transportation. (Downstream.) Refining. (Downstream.) Safety & Fire Protection. Health & Environmental. API Data. Bandung 2013.

Exploration & Production. Overview of API Standards. Category specific: Exploration & Production. 2013 Catalog Overview is 38 – pages, includes the following document types: Spec = Specification. RP = Recommended Practice. Bull = Bulletin. TR = Technical Report. Std = Standard. Publ = Publication. Guidelines.

Exploration & Production. Overview of API Standards. Category specific: Exploration & Production. Topics covered: GENERAL: OIL FIELD EQUIPMENT AND MATERIALS. OFFSHORE STRUCTURES. DERRICKS AND MASTS. TUBULAR GOODS. VALVES AND WELLHEAD EQUIPMENT. DRILLING EQUIPMENT. HOISTING TOOLS. WIRE ROPE.

Exploration & Production. Overview of API Standards. Category specific: Exploration & Production. Topics covered: OIL WELL CEMENTS. PRODUCTION EQUIPMENT. LEASE PRODUCTION VESSELS. (Storage tanks & heaters.) DRILLING FLUID MATERIALS. OFFSHORE SAFETY AND ANTI-POLLUTION. FIBREGLASS AND PLASTIC PIPE. DRILLING WELL CONTROL SYSTEMS. SUBSEA PRODUCTION SYSTEMS.

Exploration & Production. Overview of API Standards. Category specific: Exploration & Production. Topics covered: COMPLETION EQUIPMENT. SUPPLY CHAIN MANAGEMENT. DRILLING AND PRODUCTION OPERATIONS: REC. OPER. PRACTICE. DRILLING AND PRODUCTION OPERATIONS: TRAINING. SPECIAL PUBLICATIONS. VOLUNTARY OPERATING AGREEMENTS AND BULLETINS. HEALTH, ENVIRONMENT, AND SAFETY: 4-Topic choices. SECURITY. Opic Bandung 2013.

Exploration & Production. Overview of API Standards. Category specific: Exploration & Production. In the Exploration & Production 2013 Catalog Overview of 38-pages: There are 286 non-language specific listings of API - Spec’s, RP’s, Bull’s, TR’s, Std’s, Publ’s, and Guidelines.

Exploration & Production. Risk Assessment is discussed in topics: Overview of API Standards. Category specific: Exploration & Production. Risk Assessment is discussed in topics: HEALTH ENVIRONMENT AND SAFETY: SAFETY STANDARDS. RP 75 – Development of a Safety and Environmental Management Program for Offshore Operations and Facilities. (SEMS – Safety & Environment Management Systems.) 41-pgs. OFFSHORE SAFETY AND ANTI-POLLUTION. RP 14J – Recommended Practice for Design and Hazards Analysis for Offshore Production Facilities. 90-pages. Use both.

Exploration & Production. Overview of API Standards. Category specific: Exploration & Production. Risk Management and Risk Assessment is discussed: GENERAL: OIL FIELD EQUIPMENT AND MATERIALS. Spec Q1 – Specification for Quality Programs for the Petroleum, Petrochemical, and Natural Gas Industry. 29-pages. Spec Q2 – Specification for Quality Management System Requirements for Service Supply Organizations for the Petroleum and Natural Gas Industries. 21-pages. (Dec. 2011.) Rev. June 2013. Hot! Subject

Risk Management and Risk Assessment is discussed: GENERAL:OIL FIELD EQUIPMENT AND MATERIALS. Spec Q1 – Specification for Quality Programs for the Petroleum, Petrochemical, and Natural Gas Industry. 29-pages. This Spec is for the establishment of ISO 29001:2007 (ISO-9001:2008.) It is for Upstream PRODUCTS. This International Standard, plus - does include requirements added specific to Risk Assessment and Risk Management. NEW June 2013.

Risk Management and Risk Assessment is discussed: GENERAL: OIL FIELD EQUIPMENT AND MATERIALS. Spec Q2 – Specification for Quality Management System Requirements for Service Supply Organizations for the Petroleum and Natural Gas Industries. 21-pages. This Spec is for the establishment of ISO 29001:2007 (ISO-9001:2008.) It is for Upstream SERVICES (example: Drilling). This International Standard, plus - does include requirements added specific to Risk Assessment and Risk Management.

Exploration & Production. Risk Assessment. Overview of API Standards. Category specific: Exploration & Production. Risk Assessment. To Survey the Risks, one needs a working knowledge of the API Standards.

Exploration & Production. Overview of API Standards. Category specific: Exploration & Production. API Standards. Select listing: RP 2A-WSD – Planning, Designing, and Constructing Fixed Offshore Platforms – Working Stress Design. 226-pages. RP 2A-WSD-S2 – Errata/Supplement to above. 92-pages. Risk Survey – ‘…assessment of existing platforms.’

Exploration & Production. Overview of API Standards. Category specific: Exploration & Production. API Standards. Select listing: Spec 6A – Specification for Wellhead and Christmas Tree Equipment. 436-pages. Risk Survey – ‘…testing, inspection, repair,…’

Exploration & Production. Overview of API Standards. Category specific: Exploration & Production. API Standards. Select listing: RP 17A – Design and Operation of Subsea Production Systems-General Requirements and Recommendations. 232-pages. Risk Survey – ‘…operations, quality assurance, materials,…’

Exploration & Production. Overview of API Standards. Category specific: Exploration & Production. API Standards. Select listing: RP 14B – Design, Installation, Repair, and Operation of Sub-Surface Safety Valve Systems. 31-pages. Risk Survey – ‘…documentation of SSSV downhole…’

Exploration & Production. Overview of API Standards. Category specific: Exploration & Production. API Standards. Select listing: Std 53 – Blowout Prevention Equipment systems for Drilling Wells. 112-pages. (November 01, 2012.) Risk Survey – ‘Differences between old RP 53 & new Std 53.’ NEW!

Exploration & Production. Overview of API Standards. Category specific: Exploration & Production. API Standards. Select listing: RP 14FZ – Design and Installation of Electrical Systems for Fixed and Floating Offshore Petroleum Facilities for Unclassified and Class 1, Zone 0, Zone 1, and Zone 2 Locations. 117-pages. Risk Survey – ‘…motion and buoyancy concerns…’

Exploration & Production. Overview of API Standards. Category specific: Exploration & Production. API Standards. Select listing: RP T-2 – Qualification Programs for Offshore Production Personnel who work with Safety Devices. 3-pages. Risk Survey – ‘…guidelines for the qualification of personnel…’

Exploration & Production. Overview of API Standards. Category specific: Exploration & Production. NEW! API Standards. New uncataloged listing: RP 96 – Deepwater Well Design and Construction. 158-pages. (March 2013.) Risk Survey – ‘…subsea blowout preventers (BOPs)…’

Exploration & Production. Risk Assessment. Overview of API Standards. Category specific: Exploration & Production. Risk Assessment. To Survey the Risks, one needs a working knowledge of the API Standards.

Exploration & Production. Risk Assessment. Overview of API Standards. Category specific: Exploration & Production. Risk Assessment. Safety – if you are not using API Standards, what are you using?

Exploration & Production. Risk Assessment. Overview of API Standards. Category specific: Exploration & Production. Risk Assessment. Safety – what is the biggest fear in offshore drilling – ‘blow-outs.’ Drilling, where to start.

Exploration & Production. Overview of API Standards. Category specific: Exploration & Production. 3 2 1 API Std. 53 BOP parts.

Deepwater Horizon spill in the Gulf of Mexico, April 2010 Deepwater Horizon spill in the Gulf of Mexico, April 2010. “Liability Losses” will exceed $20-billion. API RP 53 ‘blow-out preventer’ procedures error.

Exploration & Production. Overview of API Standards. Category specific: Exploration & Production. Deepwater Horizon sinking in the Gulf of Mexico, April 2010. The rig was insured for $560-million and this was paid as a complete “Asset Loss.” No salvage was attempted due to the 1-mile deep depth.

Exploration & Production. Overview of API Standards. Category specific: Exploration & Production. Valuation. To Survey Deepwater Horizon to “Reinstatement As New” and “equipped” would probably be $625 to $650 – million.

Risk Assessment and the API. End of Presentation. Thanks! Bandung 2013. Bandung 2013.